Direct Insurer Under Investigation

Accusations of dodgy sales tactics and defrauding customers have been levelled against Youi in Australia, mirroring recent charges laid against the company’s New Zealand branch.

The South African insurer is now under investigation by the Australian Investment and Securities Commission (ASIC), according to a Fairfax report which was triggered by the media company’s own investigation.

Fairfax says it has spoken to five whistleblowers during a six-month investigation. The whistleblowers say the company culture encouraged sales staff to defraud potential customers on a large scale by billing them for policies they never signed up for.

They also said the customers were having claims rejected due to a ‘cult-like’ corporate culture that pushes staff to falsify insurance documents to make sales. That then leaves customers paying for policies that don’t actually cover them.

“I started in sales, and I witnessed managers changing data, changing the colour of cars, changing insurance history,” said one whistleblower.

“The whole thing makes me sick. It’s all a big cover-up.”

A Youi spokesman said “while the company has not been advised of any specific investigation by ASIC regarding this matter … it will certainly assist with any and all inquiries,” according to The Courier Mail.

Fairfax has also spoken to several customers who say Youi took money from them without authorisation.

According to the Fairfax report, the whistleblowers claimed the call centre in Australia actually made many of the illegal phone sales made in New Zealand.